On Friday, crude oil prices are back in positive territory, but on course for their most significant weekly declines since November.
Accordingly, Brent crude futures increased 2.82% or 3.14 points to $112.39 per barrel. The international benchmark recovered from a plunge of 1.63% to $109.33 per barrel yesterday.
Likewise, US West Texas Intermediate oil contracts added 2.50% or 2.63 points to the $108.69 per barrel. Subsequently, it reversed its previous drop of 2.47% to $106.02 per barrel.
However, Brent was on track for a weekly fall of 5.20% after hitting a 14-year high of $139.13 last Monday.
At the same time, US crude headed to a low of 6.60% after touching $130.50, an all-time high.
This bearish outlook came amid the volatile trading this week. Prices previously eased after the European Union said it would not join the United States and Britain in banning Russian oil.
Moscow is the world’s second-largest crude exporter behind Saudi Arabia. It exports about 3.00 million barrels per day to Europe’s OECD countries, making the area heavily reliant.
Meanwhile, other top producers Iran, Venezuela, and the United Arab Emirates, may give potential supply additions.
Then, the United States made moves to ease sanctions on Venezuelan oil. The world’s largest economy also exerted efforts to seal a nuclear deal with Tehran.
Eventually, the crude oil market also anticipates additional stockpile releases coordinated by the International Energy Agency (IEA).
Analysts explained that both contracts could move sharply below $100.00 per barrel on the news about easing supply disruptions.
However, the negative headlines amid the invasion of Ukraine could set prices again at $115.00 per barrel price range.
Since the Kremlin’s February 24 invasion of Ukraine, crude oil markets have been the most volatile in two years.
UAE supports crude oil output hike
Last Wednesday, the United Arab Emirates supported pumping more oil into the market.
Remarkably, the decision signals a departure for the Persian Gulf oil producer after months of standing with its ally Saudi Arabia.
Recently, the White House has called on crude producers worldwide to increase production if they can.
The US Department of Energy also approved the twelfth exchange of 2,700,000 barrels of crude oil. This move came from the nation’s Strategic Petroleum Reserve.
It is a part of the Biden administration’s efforts to boost the US fuel inventories.
Meanwhile, experts noted that other producers would not sustain supply gaps in the near term. They grappled to meet output targets because of infrastructure underinvestment in recent years.
COMMENTS